Monday, July 30, 2007

Bank of Commerce Holdings

Bank of Commerce Holdings is a NASDAQ listed security that has been trading in a range between $10.00 and $12.50 over the past year. With 8,907,680 shares outstanding, a recent price of $10.10 gives a total market capitalization of $89,344,028. While there are certainly larger companies, Bank of Commerce Holdings has definitely earned its place in the pack. Last year, Bank of Commerce Holdings created $0.72 in earnings for every share outstanding.

Bank of Commerce Holdings is currently priced by the market at 14.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Bank of Commerce Holdings could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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